Qatar National Bank (Q.P.S.C.) (QNBK) Q3 2024 earnings summary

Executive summary

• Net profit for the nine months ended September 2024 reached QAR 12.88 billion ($3.5 billion), up 7.5% year-over-year, with operating income rising 5% to QAR 30.5 billion ($8.4 billion).

• Total assets grew 8% to QAR 1.279 trillion ($351 billion), and loans and advances increased 11% to QAR 905 billion ($248.6 billion).

• Customer deposits rose 11% to QAR 909 billion ($249.8 billion), with a stable loan-to-deposit ratio of 99.5%.

• Maintains top-tier credit ratings (Aa2/AA/A+) and is recognized as the most valuable banking brand in the region, valued at $8.4 billion in 2024.

• International operations contribute significantly, with 26% of net profit and 43% of deposits from outside Qatar as of September 2024.

Financial highlights

• Net interest income for nine months rose to QAR 24.05 billion, up from QAR 22.24 billion year-over-year.

• Cost-to-income ratio remained strong at 22.4%, among the best in the MENA region; net interest margin stood at 2.63%.

• Non-performing loans to gross loans stood at 3%, with 100% coverage on Stage 3 loans and additional risk reserves above regulatory requirements.

• Capital adequacy ratio was 19.5%, well above regulatory requirements.

• Earnings per share for the nine-month period reached QAR 1.28.

Outlook and guidance

• Loan growth guidance upgraded to 5.5%-7.5% for 2024; asset growth guidance remains 4-6%, deposit growth 5-7%, and profitability 7-9%.

• Margins are expected to benefit from Turkish rate dynamics, with slight downward pressure anticipated from domestic rate cuts.

• Cost of risk guidance for 2024 is 80-90 bps, expected to marginally improve to 75-85 bps in 2025.

• The Group is monitoring climate-related risks, which currently do not have a significant impact but increase uncertainty in estimates.

• Qatar’s economic outlook is robust, supported by LNG expansion, diversification, and strong fiscal and external positions.